JSX spares Kalla-linked Bukaka from delisting

JSX spares Kalla-linked Bukaka from delisting

Rendi A. Witular, Jakarta

The Jakarta Stock Exchange (JSX) has dropped a plan to delist
construction and engineering company PT Bukaka Teknik Utama,
which is linked to the family of incoming vice president Jusuf
Kalla, as the company's operation is still considered
sustainable.

JSX president Erry Firmansyah told The Jakarta Post recently
that the bourse had studied the company's performance and decided
to extend its listing to give some time for the company to
undergo restructuring.

"We have decided not to delist Bukaka right now. We are still
giving it a grace period to improve its performance. The decision
was not taken because Jusuf Kalla will be the future vice
president. We are not afraid of that," said Erry.

Kalla is the running mate of presidential candidate Susilo
Bambang Yudhoyono, who is almost certain to become president. The
JSX website names members of the Kalla family on the board of
directors and commissioners, with Kalla alone still holding 0.01
percent shares in the company.

In July, the JSX announced that it would delist Bukaka, along
with engineering company Texmaco Perkasa Engineering, plastic
producer PT Wahana Jaya Perkasa and infrastructure company PT
Siswani Makmur.

The delisting threat was made due to the failure of the
companies to comply with capital market regulations or because of
difficulties with their business operations.

Bukaka shares had been suspended for more than one year,
following a "disclaimer" opinion given by the company's auditor
Ernst & Young on its financial performance for four consecutive
years.

Bukaka defaulted on some US$152 million in debts due to the
impact of the Asian financial crisis in late 1997. The company is
currently still seeking settlement with its creditors over the
debts.

Many have often complained over the lack of law enforcement by
the JSX management and the Capital Market Supervisory Agency
(Bapepam) toward listed companies that fail to comply with the
regulations, especially state enterprises and those that have
huge market capitalizations or those that have close connection
with government officials.